Senate Action on Stablecoin Regulation
Senate Majority Leader John Thune has indicated to fellow Republican senators that action on a stablecoin regulation bill is expected prior to the Memorial Day holiday on May 26. This information comes from a Politico article dated April 29, detailing a closed session where Thune discussed legislative priorities with members of his party, who currently maintain a narrow majority in the Senate.
GENIUS Act Overview
The legislation in question, known as the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), was introduced by Senator Bill Hagerty earlier this year. It successfully cleared the Senate Banking Committee in March. The bill aims to ensure that only designated entities, labeled as “permitted payment stablecoin issuers,” are authorized to produce payment stablecoins within the United States.
Parallel Legislation in the House
In addition to the GENIUS Act, the Republican-controlled House of Representatives is looking to introduce a parallel bill called the STABLE Act, which stands for Stablecoin Transparency and Accountability for a Better Ledger Economy.
Impacts of Executive Orders
Despite these developments, Thune’s recent public remarks concerning President Trump’s initial 100 days in office did not include any direct references to cryptocurrency or blockchain-related legislation. Since Trump’s inauguration on January 20, he has implemented various executive orders that could impact the nation’s cryptocurrency policies, including measures specifically dealing with stablecoins. However, many of these executive orders lack enforceable power without further congressional action.
Concerns Over Conflicts of Interest
One notable executive order signed on January 23 established a working group tasked with exploring the potential for a national crypto stockpile and a regulatory framework governing stablecoins. Critics, including some Democratic lawmakers, voiced concerns over potential conflicts of interest stemming from Trump’s associations with the crypto sector, particularly following the launch of a USD1 stablecoin by World Liberty Financial—a firm connected to Trump’s family. They argue these ties could introduce significant risks to the financial system as Congress deliberates on the proposed stablecoin legislation.
